China's conditions are not bad, and their dialectic has already taken reality into consideration as it seeks to solve this contradiction. Read "The Basic Viewpoint and Policy on the Religious Question during Our Country's Socialist Period" released in 1982.

We Communists are atheists and must unremittingly propagate atheism. Yet at the same time we must understand that it will be fruitless and extremely harmful to use simple coercion in dealing with the people's ideological and spiritual questions--and this includes religious questions. We must further understand that at the present historical stage the difference that exists between the mass of believers and nonbelievers in matters of ideology and belief is relatively secondary. If we then one-sidedly emphasize this difference, even to the point of giving it primary importance--for example, by discriminating against and attacking the mass of religious believers, while neglecting and denying that the basic political and economic welfare of the mass of both religious believers and nonbelievers is the same--then we forget that the Party's basic task is to unite all the people (and this includes the broad mass of believers and nonbelievers alike) in order that all may strive to construct a modern, powerful Socialist state. To behave otherwise would only exacerbate the estrangement between the mass of believers and nonbelievers as well as incite and aggravate religious fanaticism, resulting in serious consequences for our Socialist enterprise. Our Party, therefore, bases its policy of freedom of religious belief on the theory formulated by Marxism-Leninism, and it is the only correct policy genuinely consonant with the people's welfare.